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Electrical Charges in Indonesia Increase an Average 4.3% on April 1, 2013

Electricity charges in Indonesia will rise an average 4.3%, effective April 1, 2013. The prospect of higher energy costs has many hotelier in Bali strategizing on how to reduce energy consumption and, in some cases, reduce staffing in order to be able to pay their electrical bills.

The vice-chairman of the Indonesian Hotel and Restaurant Association(PHRI-RI), Johnnie Sugiarto, told detikfinance that the increase electrical tariff was putting hotel operators under pressure. He described how the higher power charges come at a time when many hotels are experiencing low occupancies and increases in the minimum wage levels set by regional governments.

Sugiarto warns that in order to address these business pressures the management of hotels will seek to reduce the number of employees while, at the same time, reducing the amount of electricity used by each property.

The April 1, 2013 increase of 4.3% in electrical charges follows a similar increase in power charges introduced on January 1, 2013.

The increase effective on April 1, 2013 varies depending on the consumer’s classification according to categories assigned by the State Power Board (PLN):

Large residential consumers (R-3) using more than 6,600 K Va will see rates increase 9.62% from Rp. 1,195/Khw to Rp. 1,310/Khw.

Mid-sized businesses (B-2) using between 200 k Va and 6,600 K Va – a category occupied by many 3-starred hotels, restaurants and businesses place will have power rates increase 8.23% from Rp. 1,216/Kwh to Rp. 1,315Kwh.

Large Business (B-3) with power usage above 200 kVa – a category used by 4-star hotels and above, shopping centers, entertainment centers and television stations will see power tariffs increase 10.26% from Rp. 975/Kwh to Rp. 1,076/Kwh,

Government offices using between 6,600 Va to 200 k Va will increase 3.69% from Rp. 1,220/Kwh to Rp. 1,265 Kwh.

The rapid loss of agricultural lands in Bali to tourist accommodation, residential housing and commercial uses is threatening government goals to make the Island self-sufficient in rice.

As reported by The Bali Post, data on the amount of productive agricultural land remaining in Bali at the end of 2011 was 39,033 hectares. One year earlier the amount of agricultural land was put at 47,934 hectares representing a decline of 17.7%, in a single year.

The head of Bali’s Bureau of Statistics (BPS), Gde Suarsa, warns that if this trend if not urgently addressed it will mean agricultural production in Bali will experience a significant decline, threatening Bali’s food security.

Accordingly, rice production in Bali for the period January-April 2012 declined 9.9% – a reduction of 31.374 tons when compared to the same period in 2011.

Indonesian Government to Make Bali Port of Benoa the Largest Cruise Port in Indonesia

Plans are underway between Indonesia’s Transportation Ministry, the Ministry of Tourism and the Creative Economy and the State-owned Company managing major ports – PT Pelindo III to develop Bali’s southernmost port of Benoa into the largest cruise port in Indonesia.

As reported by Beritabali.com and Seputarbali.com, the CEO of PT Pelindo III at Benoa, Iwan Sabatini, has revealed that his Company is in the process of calculating the extent of dredging and port enlargement, and supporting shore infrastructure pursuant to accommodating ships well over 300 meters in length.

The current length of the passenger pier at Benoa is slightly more than 300 meters. Ships longer than 300 meters must drop anchor near Serangan island or near Nusa Dua and use ship’s tenders for passengers landing at the Benoa cruise terminal.

Iwan confirmed that the longest ship to berth to date at Benoa has measured 265 meters.

Benoa is targeting to handle at least 38 cruise ships in 2013. In the months of January and February of 2013, the total number of ships to visit Benoa was around 10, with an average of 2,000 passengers each.

In March 2013 two ships are scheduled to visit Benoa on the same date.

Bisnis Indonesia reports that the Bali regency of Badung would “begin” limiting licenses and control the development of accommodation in South Bali in order to secure the island’s security, maintain occupancy levels, defend the destination’s reputation and guard mobility.

Cokorda Raka Darmawan, the head of the Badung Tourism Office, said that the brakes are now being applied on new requests for accommodation projects in the Badung regency.

“The development of all types of accommodation in this area (South Bali) has become too numerous, requiring control and limits to make the area more attractive for visitors,” said Darmawan on Tuesday, January 1, 2013.

Raka Darmawan estimates there were 2.8 million foreign visitors in 2012, supplemented by around 5.4 million domestic visitor for a total head count of 8.6 million visitors.

He was quick to add, that not all visitors stay in Badung. “Only around 65% of tourists stay in Badung with the remainder choosing other regencies. On the average, visitors stay for three days,” explained Raka Darmawan.

Darmawan hopes that by limiting accommodation projects the number of foreign tourists staying in Badung will increase further, assisted by repairs on the infrastructure such as the airport, underpass and more flights to Bali.

“If everything is running, then in 2014 the number of foreign tourists can increase. But if the infrastructure and facilities are not operating, the quality of the destination will be lost. We need strong promotion,” said Raka Darmawan.